Summary
'The Intelligent Investor' is one of the first books written on the principles of value investing. The first version of this book was published in 1949 by the Warren Buffet's guru, Ben Graham. The current version has been revised and edited by Jason Zweig and Warren Buffet.
This book contains 20 small and concise chapters that cover Graham's personal investing mantras from things to consider when 'Investing in Investment Funds' to real-life case studies in Graham's career spanning several decades.
It is one of the first books I read in the investing field and I truly recommend this novel for everyone looking to explore the logical beauty of the stock market and personal finance.
Mr.Market
Arguably, the most memorable aspect of this book is the allegory of Mr.Market. Mr.Market is defined as the market sentiment which is either overly excited and offers incredibly high prices to investors, or equally sad and under-values sturdy companies. The principle concept here is that an investor should not rely on market sentiment when valuing a company as it continues to vary drastically over the short-run.
Active vs Passive Investing
Another interesting concept in 'The Intelligent Investor' is the difference between an active and passive investor. An active investor is one who spends most of his/her time analyzing, tracking and trading shares in the market. This would become one's full-time job.
On the other hand, a passive investor is one who enjoys the returns of the stock market, without putting much effort in trading. This is a slow method of accumulating wealth as an alternative to fixed deposits and other fixed income streams.
Memorable Quotes
To give you a first hand insight I have picked out some memorable quotes from this classic:
“The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The Intelligent Investor is a realist who sells to optimists and buys from pessimists.”
"Investing isn’t about beating others at their game. It’s about controlling yourself at your own game."
“Those who do not remember the past are condemned to repeat it.”
How To Buy the Book in India
Luckily, this book is available on Amazon and can be shipped right to your doorstep. To order this book, click on the following link:
